Are you ready to buy and sell stocks & shares?

It is common knowledge that share market investments yield the best returns over a long period of time, if one knows how to go about it correctly. Success in the stock market depends a lot on the capability and mindset of the investor rather than the market. The same market rewards some people and causes losses to others mainly due to this difference.

Here are ten facts that you should not overlook if you are buying and selling shares.

10 Must Know Facts Before You Try To Make Money Selling Shares

1. Set your expectations right:

Many people start investing in stock markets hoping to double their money in a year or less. While this is sometimes possible by pure luck or taking insane risks, it is a rare phenomenon and not sustainable over any reasonable length of time. Stock markets give good returns over long periods of time that will be in the range of 10 to 12% annually. If you are looking for something more, you are speculating, not investing and that is a very risky thing to do. Stock market returns are also not fixed, but come with a lot of volatility and even with some short-term losses. So get the expectations right or your emotions will get the better of you and you are very likely to make irrational decisions.

2. Stock market investment is a long-term activity:

Short-term movements of the market are just noise or knee-jerk reactions to company or economic news. They are what they are – short-term. There is nothing more to read from it. Benjamin Graham (known as the father of value investing) put this across nicely when he said that in the short-term the market is more like a popularity voting machine and in the long run it is a value weighing machine. Don’t bet on the popularity which goes up and down every other day, bet on the substance. In the long run the markets and stock prices move towards their fundamental valuations. It is unfortunate that many investors bark up the wrong tree and lose money in popularity contests rather than looking for value.

Warren Buffett once said that he would only buy something that he would be happy to hold even if the market stops trading for ten years. This is the kind of long-term view that is required to focus on quality stocks.

3. Turn a deaf ear to free investment advice:

Business channels on TV are 24 hour animals, they need to be fed. You will find a lot of analysis going on about why this stock went up or that went down or about which direction it may take based on some future events or predictions. As discussed above, these are most likely short-term movements which may not represent any real change in valuation. Any event that doesn’t affect the valuation of a stock or does not have a long term economic impact does not matter to the long-term stock investor. Keeping out all this noise about short-term market volatility will give you more time to focus on real changes that affect company performance which are the real issues that a smart investor should be focusing on.

4. Think and act like the owner of the company:

When you buy a stock, you are buying a share in the company however small it may be. Think about buying a stock like you are buying a company. This means you have to do quite a bit of research about the company, its business, its past performance, checking out its competitive advantages and forecasting future trends in the light of the company’s strengths and the likely economic scenarios. Deciding to buy or sell a stock should not be an impulsive decision, it should be a well thought out decision.

Peter Lynch one of the best in the mutual fund business said that to buy a stock, the company has to be profitable, the business should have a strong competitive advantage and the stock price has to make sense.

5. Buy when a stock is cheap and sell when it is high:

This seems to be the obvious thing to do, but knowing when a stock is cheap and when it is time to sell needs an understanding about valuations. Novice stock investors assume that what goes up must keep going up and use the price direction to make their investment decisions. They usually end up buying when the stock is expensive and close to its highs and selling when it is cheap. They thus do the opposite of what they are supposed to be doing. Making investment decisions solely on the basis of price movements is like allowing the tail to wag the dog. Only a person who thinks like an owner and understands valuation will be able to time the market properly.

Benjamin Graham, known as the father of value investing advises that one should never sell in panic just because the prices have fallen and the market is undervaluing a stock, as the prices will bounce back.

Link: (Video) A Fun And Easy To Understand Cartoon Of How The Stock Market Works

6. Don’t give undue weightage to a company’s management:

Even the best management team cannot run a company profitably if it has a bad business model and financial position. Management teams can change many times during a company’s life and so it should be given only due weightage and the company’s strengths and weaknesses should take precedence over it. Even an ace driver cannot win a race if the car he is driving is a slow dilapidated vehicle with partially inflated tires.

7. Patience is essential, but it is very different from being stubborn:

Never forget the original analysis on the basis of which you purchased a stock. When the outlook of the economy or the company changes check how it impacts the original analysis, valuation and forecasts. If you would not buy a stock based on what you know today, there is no great reason to hold on to it even if you already own it. Patience is when you hold on to a stock in spite of price fluctuations and this will usually be rewarding. You are stubborn when you keep on holding to a stock just because you don’t want to take a loss or want to be proven wrong. This can lead to big losses.

8. When an investment is obvious to everybody it is usually time to exit:

Recognizing the signs of the top of a market move allows you to exit when the prices are high. It is a familiar pattern when stock prices go up. When the prices are low, only the smart investors notice it and accumulate it. Then the prices go up, more people start to take notice and buy, pushing the price up further. Next the TV channels start talking about the stock and more people on the sidelines start rushing in. As prices go up further, everyone, their drivers and gardeners are also aware of the stock and there is a mad rush to jump into the bandwagon. This is when the stock is trading at many times its fair price and smart investors quietly sell the stock. When the stock is obvious to the whole world, it is a bad sign and a time to exit. Recognize these signs of a top, because after this point a huge correction is around the corner.

Hedge Fund Manager Jim Cramer emphasized this by saying that bulls and bears make money while pigs get slaughtered. Stocks which are overvalued and still rising are just climbing up a tower to take a suicidal jump.

9. A safety margin is always necessary:

The future is always unpredictable and however skilled an investor is in analyzing valuations and forecasting the future, there will be surprises. This could be due to unforeseen events or changes in a company’s internal or external environment. All great investors keep a margin of safety to prevent major losses in the event things don’t go as expected.

10. Never put all your eggs in the one basket:

Diversification across many different industries and sectors is the key to a healthy portfolio. Economic events usually impact different sectors differently. Having all stock investments in one or two industries could result in a disaster if an event that impacts them adversely occurs.

It is possible to make money selling shares and obtain handsome returns in the long run, but you must go about it like a businessman and not as a speculator. The ten things mentioned above are cold hard facts that you should always keep in mind while investing in stocks.

Be sure to checkout our 22 Must Know Investment Quotes By Some Of The Worlds Greatest Investors for some unforgettable investment advice.

Article By: Neil Cloud | Addicted2Success.com

A number of these stock market legends have predicted huge crashes, have been the backing behind very successful, world renowned companies and a few of them have even made their millions to billions in just days.

Here are 22 must know investor quotes by some of the worlds greatest investors.

The Top 22 Investment Quotes

Warren Buffett (Net Worth $39 Billion) – “‘Price is what you pay; value is what you get.’ Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.”

George Soros (Net Worth $22 Billion) - ”I’m only rich because I know when I’m wrong…I basically have survived by recognizing my mistakes.”

Carl Icahn (Net Worth $13 Billion) - “You learn in this business: If you want a friend, get a dog”

David Rubenstein (Net Worth $2.8 Billion) – “Persist – don’t take no for an answer. If you’re happy to sit at your desk and not take any risk, you’ll be sitting at your desk for the next 20 years.”

Ray Dalio (Net Worth $6.5 Billion) – “More than anything else, what differentiates people who live up to their potential from those who don’t is a willingness to look at themselves and others objectively.”

Alisher Usmanov (Net Worth $18.1 Billion) - ”First of all I trust my own instinct, experience that I gained over years and feeling when the moment is right for buying shares. That is what one calls intuition.

Carlos Slim (Net Worth $69 Billion) - “Anyone who is not investing now is missing a tremendous opportunity.”

Eddie Lampert (Net Worth $3 Billion) – “This idea of anticipation is key to investing and to business generally. You can’t wait for an opportunity to become obvious. You have to think, “Here’s what other people and companies have done under certain circumstances. Now, under these new circumstances, how is this management likely to behave?”

T. Boone Pickens (Net Worth $1.4 Billion) - “The older I get, the more I see a straight path where I want to go. If you’re going to hunt elephants, don’t get off the trail for a rabbit.”

Charlie Munger (Net Worth $1 Billion) – “If you took our top fifteen decisions out, we’d have a pretty average record. It wasn’t hyperactivity, but a hell of a lot of patience. You stuck to your principles and when opportunities came along, you pounced on them with vigor.”

Jim Cramer (Net Worth $100 Million) - “As long as you enjoy investing, you’ll be willing to do the homework and stay in the game. That’s why I try to make the show so entertaining, because if you aren’t interested, you’ll either miss the opportunity to make money in the market or not pay enough attention and end up losing your shirt.”

Michael Milken (Net Worth $2.1 Billion) – “My experience indicates that most people who’ve accumulated a great deal of wealth haven’t had that as their goal at all. Wealth is only a by-product, not the original motivation.”

David Tepper (Net Worth $5 Billion) – “This company looks cheap, that company looks cheap, but the overall economy could completely screw it up. The key is to wait. Sometimes the hardest thing to do is to do nothing.”

Benjamin Graham – R.I.P (Net Worth Unknown) – “The individual investor should act consistently as an investor and not as a speculator. This means that he should be able to justify every purchase he makes and each price he pays by impersonal, objective reasoning that satisfies him that he is getting more than his money’s worth for his purchase.”

Louis Bacon (Net Worth $1.4 Billion) – “As a speculator you must embrace disorder and chaos.”

Paul Tudor Jones (Net Worth $3.2 Billion) - “Were you want to be is always in control, never wishing, always trading, and always, first and foremost protecting your butt. After a while size means nothing. It gets back to whether you’re making 100% rate of return on $10,000 or $100 million dollars. It doesn’t make any difference.”

Peter Thiel (Net Worth $1.5 Billion) – “Value investors look at cash flows. If a company can maintain present cash flows for 5 or 6 years, it’s a good investment. Investors then just hope that those cash flows—and thus the company’s value—don’t decrease faster than they anticipate.”

Bruce Kovner (Net Worth $4.3 Billion) - ” My experience with novice traders is that they trade three to five times too big. They are taking 5 to 10 percent risks on a trade when they should be taking 1 to 2 percent risks. The emotional burden of trading is substantial; on any given day, I could lose millions of dollars. If you personalize these losses, you can’t trade.”

Rene Rivkin (Net Worth $346 Million) - “When buying shares, ask yourself, would you buy the whole company?”

Peter Lynch (Net Worth $352 Million) – “I think you have to learn that there’s a company behind every stock, and that there’s only one real reason why stocks go up. Companies go from doing poorly to doing well or small companies grow to large companies.”

John Templeton (Net Worth $20 Billion)- “The time of maximum pessimism is the best time to buy and the time of maximum optimism is the best time to sell.”

John (Jack) Bogle (Net Worth $4 Billion) - “If you have trouble imagining a 20% loss in the stock market, you shouldn’t be in stocks.”

Article By Joel Brown

Multi Billionaire Investor ‘Warren Buffett‘ who once was ‘The Richest Man In The World‘, shares his 5 major rules to living a successful life.

Warren Buffet’s 5 Life Tips

On Earning: “Never depend on a single income. Make Investments to create a second source.”

On Spending: “If you buy things you do not need, soon you will have to sell things you need.”

On Savings: “Do not save what is left after spending, spend what is left after saving.”

On Taking Risks: ”Never test the depths of the river with both of your feet.”

On Expectations: “Honesty is a very expensive gift. Do not expect it from cheap people.”

Here are five lessons that the Oracle of Omaha – Warren Buffett passed on to his son, Peter Buffett.

Stay in Milwaukee

Give Your Kids Opportunity, Not Handouts

Give to Charity, and Get a Lot Back

Invest in Potential

Do What You Love

Widely regarded as one of the most successful investor in the world, Mr.”Warren Buffett“, worth $50 Billion Dollars this year on the Forbes Rich List turned 81 a couple days ago.

To celebrate his belated 81st we have decided to feature “10 Rare Facts That You May Not Know About The Legendary Mr.Warren Buffett“.

Warren Buffett’s First Career? Paperboy.

He was a paperboy for The Washington Post… and the Times-Herald, apparently. He began selling both papers so that when customers canceled their subscriptions to one, he had the other ready for them to buy.

 

His Favorite Restaurant

Image: banlon1964 via flickr

We all knew he was frugal — and Buffett’s favorite restaurant, Piccolo Pete’s in Omaha, proves as much. There you can buy a New York Strip Steak there for $9.95.

 

Disowned His Granddaughter?

Warren Buffett disowned his granddaughter, Nicole Buffett, in 2006, after she participated in a documentary about children of the ultra-wealthy. Warren’s son, Peter, formally adopted Nicole when he married her mother — but the two divorced 10 years later. Warren Buffett was reportedly so enraged by Nicole Buffett’s participation in the documentary that he wrote to her in a letter, “I have not emotionally or legally adopted you as a grandchild, nor have the rest of my family adopted you as a niece or a cousin.”

 

Warren Buffett… Not Really a Fan of “The Office”?

Remember Buffett’s cameo on “The Office”? Apparently, he had never even seen the show before.

He’s a Frat Guy

Buffett is a frat guy — no, really. He pledged Alpha Sigma Phi. The fraternity focuses on “silence, purity, charity, honor and patriotism” according to its mission statement.

 

He Loves Cheetos… and Soda

He loves junk food. A profile on Buffett in the Wall Street Journal noted his penchant for snacking on Cheetos, licorice candy and Cherry Coke.

 

He Eats Exactly 2,500 Calories a Day

And so long as we’re on the subject of food — Warren Buffett has said he eats exactly 2,500 calories a day. The strategy is part of his own, personal style of nutrition — he famously once said “If I eat more than 2,500 calories a day, I’m going to gain weight. If I eat less than 2,500 a day I’m going to lose weight. I’d like to choose the 2,500 calories that I eat.”

 

Warren Buffett Poses for a Christmas Card

He once posed for a Boston College MBA student’s Christmas card… Wearing red, light-up reindeer antlers. 

 

His First Return on an Investment? $5.

Buffett bought his first stock at age 11, according to a Salon profile. He later sold it for a $5 profit.

 

An Open Marriage.. Kinda

Warren Buffett had an open marriage — well, kind of. He and his wife, Susan, separated in the 1970s and lived apart until her death in 2004. As popular lore dictates, Warren then took up a relationship with Susan’s friend Astrid Menks (at Susan’s suggestion). The three remained close through the years, often sending Christmas cards signed “Warren, Susie and Astrid.” Two years after Susan’s passing, Astrid and Warren wed — they had dinner at “Bonefish Grill, a casual seafood restaurant,” afterward.

This post originally appeared on Mogulite

We have a list of the 11 Greatest Wall Street Movies & Documentaries you need in your movie playlist. These movies have a good message as to how uncertain things can be in dealing with the stock market, and also how rewarding things can be if you play your cards right.

Add these to your Movie collection and inspired by the greatest Wall Street movies of our time.

The Top Wall Street Movies

Boiler Room (2000)

In a sentence: If you’ve ever worked in a job in sales or telemarketing, this should seem all too familiar to you.

Plot: Vin Diesel and Giovanni Ribisi as Long Island pump and dump brokers? Count us in. This classic flick showcases Ribisi’s rise to the top as he learns the ins-and-outs of operating in a boiler room out of Long Island. It’s very similar to Jordan Belfort‘s upbringing, minus the yachts and excessive drug use.

Glengarry Glen Ross (1992)

In a sentence: “The leads are weak? You’re weak!” -Alec Baldwin

Plot: Glengarry Glen Ross takes place off of Wall Street but still deals with the incentives that salesman deal with, including bonuses and cars and how they’ll do anything to close the sale. Alec Baldwin is only in the movie for about 10 minutes but gives an speech that deserves an Oscar to a group of all-star actors including Jack Lemon, Kevin Spacey and Ed Harris.

Bonfire of the Vanities (1990)

In a sentence: The film’s ability to tackle different New York City social classes is without question.

Plot: Originally a book by Tom Wolfe, Bonfire of the Vanities targeted the Manhattan elite of the 1980s and their distance from the rest of the city. Tom Hanks, as the film’s lead, gets involved in an extramarital affair and, eventually, a tragic murder results. Remains excellent viewing to understand New York’s stratification today.

Rogue Trader (1999)

In a sentence: Faster paced British version of “Wall Street.”

Plot: Based on the real-life story of Barings Bank trader Nick Leeson, Ewan McGregor does a surprisingly awesome job of emulating the British wunderkind down to his addiction to fruit candies. While a relatively unsuccessful movie at the box office, Rogue Trader is entertaining.

Trading Places (1983)

In a sentence: No movie about Wall Street is funnier than the 1983 comedy “Trading Places.”

Plot: Eddie Murphy and Dan Akroyd are at their best as director John Landis tells the tale of how one man’s fall from Wall Street is another man’s blessing. Watching Murphy talk about futures and markets is hilarious and unparalleled in humor.

Wall Street (1987)

In a sentence: The classic Wall Street film.

Plot: Oliver Stone originally set out to depict the greed associated with Wall Street in the 1980s. Little did he know, it would go on to become one of the finest pieces of financial cinema ever created. Traders still go nuts for this movie and everyone loves Michael Douglas’ character Gordan Gekko, who is modeled partly after Michael Milken and Ivan Boesky.

Wall Street: Money Never Sleeps (2010)

In a sentence: Part 2 of the classic Wall Street, Gordon Gekko is released from jail to start a new life, does he start a new life or does he get caught up back in the spiralling world he created on Wall Street?

Plot: To take down a merciless finance executive, a young trader agrees to a disgraced Wall street legend’s proposal in exchange for the man to be reunited with his daughter, the trader’s fiancée.

Enron: The Smartest Guys In The Room (2005)

In a sentence: One of the best documentaries ever made. Ever.

Plot: Enron: TSGITR tells the tale of Enron’s rise and fall from grace, including the strange tales of executives Ken Lay, Jeff Skilling, Andy Fastow, and Timothy Belden. This breathtaking movie also features interviews from former energy traders and hedge fund king Jim Chanos.

Trader (1987)

In a sentence: Brilliant… If you can find it.

Plot: Made in 1987 during the raging bull-market, this little-known documentary stars Paul Tudor Jones and chronicles his day-to-day life as an active investor. Jones uses techniques like historical chart reading, taken from Jesse Livermore, to predict the Black Monday crash on film. Even though it portrays Jones in a positive light, finding a (legitimate and legal) copy of this movie is nearly impossible to find as it’s rumored that Jones bought all 1000 copies in existence.

American Psycho (2000)

In a sentence: You’ll never look at business cards the same way again.

Plot: Patrick Bateman, played by Christian Bale in American Psycho, is the consummate Wall Street professional, beyond the fact that he’s losing his mind. Throughout the film Bateman utters some absolute classics, including a soliloquy on Phil Collins that likely changed his career for ever. The film also made ‘The Dorsia’ a catchphrase for an exclusive restaurant.

Quants: The Alchemists Of Wall Street (2010)

In a sentence: A rare look inside the minds of mathematical geniuses who have invented financial models that have both destroyed and made Wall Street.

Plot: Quants is 45-minute documentary on the inner-workings of quantitative analysts on Wall Street.  If you’d like to watch it, it’s embedded below via YouTube.

Nowadays the best way to prepare for an internship is to know as much about the experience BEFOREHAND, as possible. There are so many little things that matter in a Wall Street internship…..and the more educated you are, the better off you’ll be.

Every minute in the office matters and every little bit of knowledge puts you one cut above the next man. In this dog eat dog world we live in its always good to know how you should and shouldn’t act on Wall Street if you hope to one day be a permanent staff member, making plenty of cash in the Boiler Room. We share with you 14 Things That Every Wall Street Newbie Should Know.

Wall Street Internship Advice

#1: Cold calling is hell

We all know it because we’ve all done it. Asking strangers for money on the phone is probably the worst thing you’ll do in your career, but it builds tenacity and forces you to develop an enormous tolerance for rejection.

If you’re perceptive, cold calling will teach you the one sacred truth you need to succeed in this world: Life is a straight-up numbers game, baby.

#2: Beware of egos

Lots of people on Wall Street have enormous egos. When they talk to you, an intern, they don’t actually expect you to speak to them in return. You just need to listen and nod attentively—like you’re hearing the great riddles of the universe solved for your benefit. This may sound demeaning but it isn’t. Not having to talk much or commit to anything is one of the biggest benefits of your internship.

The Wolf Of Wall Street “Jordan Belfort” who I was lucky enough to meet in person a couple months ago for a work conference spoke to us about the importance of learning from your past mistakes and setting your goals to the highest degree to achieve financial success.

Jordan Belforts Best Selling book “The Wolf Of Wall Street” has been snatched up by Hollywood Director Martin Scorsese and is being filmed as we speak with Leonardo Di Caprio acting as Jordan with hopes of a 2013 release.

This 2 Part Video is an interview with Jordan Belfort explaining how he became known as “The Wolf Of Wall Street” and how he lost his Hundreds of Millions of Dollars by making the wrong decisions in business.

Jordan Belfort – The Wolf Of Wall Street Pt 1

Jordan Belfort – The Wolf Of Wall Street Pt 2

This Old but funny video will explain everything you need to get started in the stock market.

Ever wanted to know how the Stock Market works? This Cartoon right here explains the basics of how companies go public and sell stock to investors. When we remember the basic purpose of the stock market, we can better understand why income investments are the best. Good companies use our initial capital to create goods that are in demand.

A Cartoon Of How Stocks & Shares Work

VH1 Unravel the Fabulous life of a Wall Street Winner. All those cold calls and hard close sales have paid off for these top dogs. Check these 3 part videos and be inspired to move on up and make real money in the boiler room!    

The Stock Market Kings – Living The Wall Street Lifestyle Pt.1

http://www.youtube.com/watch?v=Mo6i6916XZs

The Stock Market Kings – Living The Wall Street Lifestyle Pt.2

http://www.youtube.com/watch?v=f6Mr4WhsBNs

The Stock Market Kings – Living The Wall Street Lifestyle Pt.3

http://www.youtube.com/watch?v=Bp12t9gq1K4

At a time when trust, respect & financial return are hard to come by on Wall Street one man continues to break the mould. Warren Buffett, the richest man in the world, at almost 69 Billion Dollars you would say that Warren Buffett knows by now how to make money and keep it.

Warren Buffett fills us in on what he has learned through his ups and downs in the money making game and the golden rules to stand by to make your money work for you.

Warren Buffett’s Advice

Warren Buffett’s Keys To Success

15 Yr old Damon Williams is on his road to millions, already making $50,000 a year and growing.

This is just the beginning for this young entrepreneur. It goes to show age is really nothing but a number. Checkout the Video Interview in this post. 

Damon  Williams – 15 Yr Old Entrepreneur